CFDP Revision Date
July 1, 2019
Journal of Economic Literature (JEL) Code(s)
E12, E32, E77
This comment points out mismeasurement of three of the variables in the DSGE model in Smets and Wouters (2007) and in models that use the Smets-Wouters model as a benchmark. The mismeasurement appears serious enough to call into question the reliability of empirical results using these variables.
Fair, Ray C., "Variable Mismeasurement in a Class of DSGE Models: Comment" (2019). Cowles Foundation Discussion Papers. 92.